It’s an underpublicised truth that a Roundhay residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Roundhay property market.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Roundhay will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer throughout the formalities.
Leasehold premises in Roundhay with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Regardless of whether you are a tenant or a landlord in Roundhay,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Roundhay valuers.
Harvey was the the leasehold owner of a conversion flat in Roundhay on the market with a lease of fraction over 59 years left. Harvey on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Harvey to exercise his statutory right. Harvey procured expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Last Christmas we were phoned by Mr and Mrs. K Girard , who took over the lease of a purpose-built apartment in Roundhay in January 2009. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Similar homes in Roundhay with an extended lease were valued around £191,400. The mid-range amount of ground rent was £55 billed quarterly. The lease expiry date was on 16 May 2079. Having 54 years remaining we approximated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 plus expenses.
Mr and Mrs. R Ramírez purchased a first floor flat in Roundhay in March 2004. The dilemma was if we could estimate the premium would be to prolong the lease by a further 90 years. Identical residencies in Roundhay with 100 year plus lease were valued around £295,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease came to a finish on 9 January 2099. Having 74 years left we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.